Sgegede Productions, a computer software company wants to test the volume of its sales (Y) in different stores throughout NY State based on the retail price (Py) charged by the individual
store. A survey of sales levels in 10 stores during a particular holiday weekend is taken and
shows the following figures:
Py Y
222 360
199 420
182 475
235 290
165 530
201 380
196 454
219 330
173 495
211 405
Given the above information, use the computer printout to show the following
information:
a. a Scatter Diagram
b. the equation for the least squares regression line which will best fit the data
c. Does the sign of the slope coefficient make economic sense? Interpret its meaning.
d. the coefficient of correlation, coefficient of determination and Adjusted r 2 .
What do these coefficients tell you?